In a year where a record number of named hurricanes plowed into American and neighboring shorelines, we are reminded of all that we are unable to control. The consequences from these natural disasters left victims reeling from loss of life, property and perhaps faith that things will ever be the same again. The hurricane season is finally over offering a short reprieve.

In contrast and perhaps crass comparison, it seems as if there is no end in sight to the string of named accounting scandals that continue to come ashore and pummel investors. Unlike hurricanes, these scandals are 100% man-made. Scandal season remains open-ended.

At a recent AICPA event in Washington, D.C., SEC chairman Christopher Cox discussed his thoughts on these numerous accounting scandals. "Criminal conduct could be concealed in a thicket of detail." Further, he said, "Conformity to hundreds of technical rules became not a shield to protect investors, but a sword to be wielded against them."

According to Stephen Taub of CFO.com, “Cox also expressed concern about the dearth of competition among the major accounting firms. Big Four firms audit 80 percent of U.S. public companies, he observed, and their audit clients account for 99 percent of all U.S. public-company annual sales.”

Simplifying accounting rules and encouraging competition in the accounting field is a cogent and promising strategy. These measures offer some control to prevent fraud and investor losses. Cox and the SEC intend to continue the arduous process of making it easier for everyone to understand the financials of a public company. They also must make certain public companies actually implement their new guidelines.

At Caveat Research, much of our work involves investigating allegations of accounting fraud, which is usually committed by a company’s leadership. In layman’s terms, did they cook the books? Was there a pump and dump? Did senior executives encourage investors to buy all the while knowing their company’s numbers really had little promise of growth for the future?

Indeed, we often learn from interviewing former employees of a company under investigation that they were confused about how to report and forecast their numbers. The accounting process was layered and difficult even for accountants working with the numbers every day. Some formers tell us they trusted that company leadership was ethical and conformed to the accounting guidelines such as GAAP and Sarbanes-Oxley. Unfortunately, investors know all too well that this trust was sometimes misplaced.

Former employees tell us that updated accounting rules are helping, but it is still easy for senior executives to hide their fraudulent ways. We also hear that companies are slow to integrate the newer and easier accounting guidelines. When asked why the delays, formers say that the company was simply preoccupied by running their business. For example, the implementation and enforcement of new guidelines from Sarbanes-Oxley was unhurried—even outside accounting firms were slow to insist that the company change their ways.

For now, we have no control over the creation and force of a hurricane. And, we know that a greedy and amoral person in business will always try to find a way to beat the system. But, there is increasing hope for investors and all harmed by the fallout of accounting scandals if revised rules mandating transparency are established and importantly, enforced.